Business Traveller

Business etiquette in China: how to seal the deal

What you do and how you do it can make or break a deal in the country. We break it down for you bit by bit

What you do and how you do it can make or break a deal in the country. We break it down for you bit by bit

The beautiful juxtaposition of the old and the new in China makes for a mysterious, enchanting and thrilling experience. Having opened its doors to the world, commercial opportunities in this country are endless. However, the Chinese are still a traditional group and balancing the dos and don’ts can get tricky. Understanding the people’s way of life is essential while building business connections. Make your way into China’s corporate world with ease keeping in mind the unique aspects of its business etiquette we’ve listed below.

UNDERSTANDING THE BASICS
Guanxi loosely translated means relationships or connections. For the Chinese, it’s not simply about the deal. Expect small talk, dinners and the like all focusing on establishing a relationship based on trust. Patience is therefore key.

Mianzi or ‘face’ is very important and should be constantly considered during discussions. ‘Saving and losing Face’ is an extremely important part of its culture. For instance, causing someone to lose face by publicly acknowledging his or her shortcomings can be very detrimental to a business relationship. Instead, if you have a problem, say so in private. On the other hand, publicly praising someone in moderation will go a long way. Using flattery within reason, particularly in front of peers, works wonders.

MEETINGS

Always show up on time, preferably a little early.

A short handshake is the best option as an over-friendly handshake or hug is considered impolite.

Accept business cards with both hands as the Chinese feel this is a little representation of themselves, hence the cards should be treated with respect. Make a show of reading it, and don’t hastily stuff it into your wallet. Instead, keep it on the table in front of you. Never write on the card, but make a point to say something nice about it, the design for instance. Hand over your card with both hands, name facing upward and in their direction. Getting your name and title printed in the native language will earn you brownie points for sure.

Remember that Chinese family names are written first and then the given names.

Use honorifics and titles as much as possible. It is as important, if not more, to know someone’s title than to know his or her name.

Sometimes only the two main people or senior officials in the room speak as it is considered rude for subordinates to interject unless called upon to do so.

The Chinese are quite comfortable in silence, so if it occurs during the meeting don’t jump in and try to fill in silence. If you’ve asked a question, it’s better to wait a little longer than usual for a response.

If you plan to give gifts, have someone call ahead to see if they are doing so as well so that they won’t lose face. Don’t wrap the gifts in white paper as white symbolises death. Go instead for gold or red, but don’t write on the card with red ink as that is said to symbolise the end of a relationship. Don’t give something too elaborate especially to government officials as it is construed as a precursor to asking for a huge favour. Stick to something with a personal touch, but not over the top. Try getting something that is not made in China. Don’t give clocks or umbrellas. Wearing a green hat symbolises adultery, so stay clear of gifting them one. The Chinese are very aware of hierarchy and are very status conscious. Always give the highest designated person the first gift and then down the line.

Four is considered unlucky as it sounds like the word for death, while eight sounds like the word for prosperity hence considered very lucky.

Don’t lose your composure or get overly emotional during the meeting. It is considered as a sign of weakness.

CONVERSATION

Expect personal questions; it shows a willingness to get to know you.

Don’t talk politics over dinner.

Topics to stay clear of include Tiananmen Square, Tibet, Taiwan, Sino-Japanese relations (don’t compare China and Japan), the Falun Gong, human rights and the Cultural Revolution. Don’t ask how many children they have, as attention need not be drawn to the country’s "One Child" policy. If these or other sensitive topics do come up, start by expressing your impartiality or then simply feign ignorance on the subject. Ancient Chinese history, Chinese geography and education are safe bets.

Don’t outright say "No" to a request and don’t take "Yes" to mean anything more than "Maybe" in most circumstances. If people are unwilling to give a straight answer, don’t force them to do so.

Don’t be too casual by addressing them by their first names unless they ask you to do so.

While humour is appreciated, don’t make fun at the expense of someone or tease someone. If you are attempting to tell a joke, make sure the interpreter mentions this.

Speak slowly and enunciate. Don’t use too many phrases, slangs and colloquialisms that we take for granted in English. Even though they may understand English, because it is a second language, chances are they will not understand. They will not ask you to repeat what you’ve said as it is considered rude.

If possible, learn a few Chinese words or phrases. Even if you happen to pronounce the words incorrectly, they appreciate your effort.

DINING

Business lunches and dinners are very important, though a business breakfast rarely occurs. Majority of business deals are strengthened over dinner. Lunch is usually between noon and one and dinner between six and seven.

Seating is in order of hierarchy, wait to be seated and wait for the host to begin.

Eat what you’re offered, even if it is only a nibble but don’t finish what is on the table. The host will take it to mean he or she couldn’t provide for you sufficiently.

When fruit is served, it indicates the end of the meal unless other plans have been made. Wait for a few minutes after to see if the host initiates leaving but if he or she doesn’t, it indicates he or she is waiting for you to do so.

Drinking is expected in most situations. If you don’t drink, say so at the beginning and then make sure you don’t drink ever. Toasts are usually given with every sip, first by the most important member and then down the line. ‘Ganbei’ means bottoms up or cheers.

If you do reciprocate by hosting a dinner yourself, do it well but not more lavishly. If it is more elaborate than the one the host provided, it will cause him or her to lose face. However, if it is not done well enough it shows disinterest.

Tipping in China is not widely accepted. Sometimes it may be considered an insult rather than appreciation. If you do tip, it is veryimportant to do it discreetly.

If it is not clear who is hosting and you wish to pay for the meal, you will have to insist at least three times. This goes for giving and receiving gifts as well.

Finally, remember that in China, developing long-lasting business relationships is extremely important. It may take a while, but once you forge a connection rest assured you’ll go a long a way in the business world.